There are many important considerations when it comes to selling a convenience store business. Inventory accuracy is crucial because both you and the buyer should know the value of the items in the store. It helps you to guarantee a fair change of ownership.
Continue reading to learn about inventory management when it comes time to sell your convenience store.
Selling a Convenience Store Business: Inventory Matters
Inventory is often the focal point of the buying/selling negotiation. Both sides have it in their best interest to secure the most accurate information. If the count is wrong, then one side is either going to pay too much or not receive a fair value for what the store is actually worth.
What happens when businesses rely on internal inventory counts?
Well, there can be questions of objectiveness. Owners may be estimating values of goods based on outdated or assumed rates that can cause the value to be off by more than 20%. Buyers may want an inventory count from an impartial party. The seller may want that as well to confirm that they were correct all along.
Fortunately, we’re usually able to diffuse any arguments over inventory because Monarch performs counts on these types of businesses regularly. We really know the market as well as what the prices are supposed to look like.
We also help convenience store owners ensure a smooth and effective exit strategy. If you’d like to learn more about the ownership transition process, we provide comprehensive services in that regard as well.
New Trends with Kansas Convenience Stores
There’s been an interesting trend where we’ve seen convenience stores begin to add valuable merchandise such as beer and liquor. This is the result of a change in Kansas law that now allows these stores to sell alcohol. It’s become very popular, especially since the onset of the pandemic, and it’s made the inventory process even more complex for convenience stores in the state.
If you’re selling a convenience store that has followed this trend of including alcoholic items, then you’ll want to take special account of them. It would be a shame not to get paid for these high-dollar products when you go to make a deal to sell the business.
Not All Inventory is Real Inventory
We sometimes have to counsel buyers and sellers about adding perishable goods to what they consider to be valid inventory. We’ve seen businesses try to include minor items like straws or toilet paper in the inventory total in an attempt to inflate the value of the business they’re selling. This is generally not how you conduct a proper valuation of a business, and it could lead to acrimony between buyers and sellers if one side believes the valuation is unfair or exaggerated.
As you might know, Monarch is in the business of inventory and making life easier for convenience stores around Kansas City. Our inventory management efforts will help increase transparency in the selling process and allow you to negotiate with potential buyers or sellers.
Monarch Provides Assistance for Selling a Convenience Store Business
Monarch makes inventory management so much easier for convenience stores, liquor stores, and more. This is a valuable service even when you’re ready to sell your business. When you’ve found a buyer and are ready to ink the deal, it’s imperative that you have accurate counts of everything, so that you can limit the possibility of disagreement.
We encourage you to allow Monarch to conduct a thorough inventory audit of your store and finally get the books right. We have the reputation of a reliable company that’s been at this since the 1980s. Our nearly perfect aggregate score on Google Reviews shows how much our clients appreciate the accuracy and friendly customer service.
Please keep us in mind if you’re thinking about selling a convenience store business and contact us if you need professional assistance.